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This paper investigates how bureaucratic public sector client organizations deal with Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) in terms of internal management. Through contextual and micro-level analyzes, the research found that client organizations appear to work at transforming outsourcing-related strategy, contract structure, and their own organizations, which are interrelated, in the context of five IT governance concerns: strategic alignment, delivery of business value, performance management, risk management, and control and accountability. The paper provides rich data on how the organizations decomposed and recomposed existing bureaucratic structures and processes.
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